5 Best Debt Mutual Funds in India 2022

If you’re looking for a way to invest your money, you may want to consider debt mutual funds. These funds are designed to give you exposure to debt securities, which are typically safer than investing in stocks.

What are Debt Funds?

Debt funds invest in debt securities such as corporate bonds, government securities, treasury bills, and commercial papers. These debt instruments typically have a fixed interest rate and an established maturity date.

While debt funds may not provide the potential for high returns like equity funds, they offer more stability and lower risk. This makes debt funds a suitable option for investors looking for steady income through interest payments, as well as those aiming for capital preservation.

1. Aditya Birla Sun Life Medium Term Direct Plan-Growth

The Aditya Birla Sun Life Medium Term Direct Plan-Growth is a great elss fund for anyone looking to save on taxes. This fund has been in existence for 9 yrs 9 m, having been launched on 01/01/2013, and has already amassed ₹1,614 Crores under management.

The fund’s top holdings are in GOI, Shriram City Union Finance Ltd., Axis Bank Ltd., Mahindra Rural Housing Finance Ltd., Canara Bank, and it returns of last 1-year are 24.57%. Overall, since launch, the fund has delivered 9.59% average annual returns. For anyone looking for a great tax saving mutual fund, look no further than the Aditya Birla Sun Life Medium Term Direct Plan-Growth ELSS fund!

2. UTI Banking & PSU Debt Fund

The UTI Banking & PSU Debt Fund Direct-Growth is a great tax saving fund for anyone looking to ELSS their taxes. This fund has been in existence for 8 years and has delivered 7.03% average annual returns.

The fund’s top holdings are in GOI, Small Industries Devp. Bank of India Ltd., National Housing Bank, Power Finance Corpn. Ltd., Axis Bank Ltd. The UTI Banking & PSU Debt Fund Direct-Growth is a great choice for anyone looking for a solid tax-saving investment.

3. UTI Bond Fund Direct-Growth

The UTI Bond Fund Direct-Growth mutual fund scheme is a great way to save on taxes while still earning decent returns. This fund has been in existence for 9 years and has delivered an average annual return of 6.69%. The fund’s top holdings are in GOI, National Bank For Agriculture & Rural Development, Reserve Bank of India, Piramal Capital & Housing Finance Ltd., Clearing Corporation of India. The fund also has a higher expense ratio than most other Medium To Long Duration funds, but this is still a great option for those looking for a tax-saving solution.

4. ICICI Prudential Short Term Fund Direct Plan-Growth

The ICICI Prudential Short Term Fund Direct Plan-Growth is a great way to save on taxes. This elss fund has been in existence for 9 years and has already delivered 8.57% average annual returns. The fund has an expense ratio of 0.37%, which is close to what most other Short Duration funds charge. The fund’s top holdings are in GOI, DME Development Ltd., Housing Development Finance Corpn. Ltd., Hongkong & S. The fund has doubled the money invested in it every 9 years. Invest now and you can too!

5. Aditya Birla Sun Life Low Duration Fund Direct-Growth

The Aditya Birla Sun Life Low Duration Fund Direct-Growth is a great elss fund for anyone looking to save on taxes. This fund has been in existence for 9 years and has a great track record of delivering 8.04% average annual returns. The fund’s top holdings are in HDFC Bank Ltd., Small Industries Devp. Bank of India Ltd., Indusind Bank and it has an expense ratio of only 0.39%. Investing in this fund is a great way to save on taxes and grow your money over the long term.

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I am the founder of StockIPO website, has a 6+ years experience in stock market industry. Expertise in financial investments, personal finance and IPO. My main aim of this journey too build awareness on personal finance among the young investors.

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